This week, the Qatar Stock Exchange registered a 68-point index increase, with capitalisation rising by QR2.63 billion. Domestic institutions remained net buyers with reduced intensity, and the QSE introduced new trading commissions. Sector demand was strong, with significant performances in transport, telecom, and real estate, although trading volumes and values saw a notable decline.
This week, the Qatar Stock Exchange (QSE) demonstrated resilience despite existing U.S. tariff concerns, with its main index rising by 68 points, resulting in a capitalization increase of QR2.63 billion. Domestic institutions exhibited net buying activity, albeit at a diminished intensity, contributing to a 0.66% gain in the 20-stock Qatar Index, which recently revised its trading commission policy by eliminating the minimum fee in favor of a fixed proportional rate.
Sectoral performance was bolstered, particularly in transport, telecom, real estate, and consumer goods, against the backdrop of the QSE launching the Al-Nukhba program aimed at enhancing the capabilities of family-owned and private companies in Qatar. Despite a decline in foreign fund net profit booking, commercial banks in Qatar reported a 3.3% year-on-year asset growth, reaching QR2.04 trillion as of January 2025.
Gulf institutions displayed an increasing trend toward net selling, trading minimally in exchange-traded funds linked to AlRayan Bank and Doha Bank. Additionally, foreign retail investors shifted to net selling, engaging in the trade of sovereign bonds worth QR10 million.
The Islamic index outperformed other market indices, supported by the recent oversubscription of Doha Bank’s $500 million global bond, with a significant interest from European and Asian investors. Overall, the market capitalization saw a 0.43% increase to QR616.07 billion, spurred by activity in small and micro-cap segments.
Total turnover and trade volumes reflected a decline, marked by the absence of treasury bills trading. The indices collectively demonstrated positive movements, while the industrial and banking sectors comprised over 54% of total trade volumes, underscoring their significance in market dynamics.
Several traded constituents reported gains, with notable performers including Qatar General Insurance, Nakilat, and Vodafone Qatar. Conversely, Gulf International Services and others saw decline in their share values amid a competitive trading environment.
The week concluded with foreign institutions markedly reducing net selling from QR463.31 million to QR136.98 million. However, domestic institutions’ net buying fell significantly, indicating a tighter market condition that led to a sharp decrease in trade volume and value across various metrics, including a substantial year-on-year decline in transactions.
The Qatar Stock Exchange has maintained a positive trajectory this week, characterized by a significant index increase and notable sectoral performances, particularly in transport and telecom. However, the market experiences indicate a trend of declining net buying activity among domestic institutions and increased selling by Gulf and foreign investors. The overall reduction in trading volumes and values highlights a cautious market outlook amid changing trading commission policies and external economic concerns.
Original Source: www.gulf-times.com
